- Interest from Hong Kong, Malaysia and Singapore
- Hotel, industrial and commercial assets a hot market
- Savills said prime and secondary yields expected to diverge
Appetite for investment in Australia has been strong for some time now, owing to the oft-repeated factors of successful Covid management, stable economy and government, among other factors.
That gave the hotel market in Australia a buzz, earlier in the year, when the iconic and landmark Primus Hotel in Sydney sold for $132 million.
Commercial property more broadly has also been doing particularly well following a number of successful raises and acquisitions across umpteen different ASX listed property companies.
In more recent times, Rydges Sydney Airport hotel also hit the market, the sale widely expected to be one of the biggest sales of the year.
Asian appetite returns
Savills Australia recently reported returned strong interest from Asian investors. Whilst China was previously the dominant player, Savills said the strong interest for on or off market sales came from Hong Kong, Malaysia and Singapore.
“Offshore groups… have recorded strong interest in what little stock is for sale… with many hounding sales agents for leads or pipeline appointments.”
Andy Hu, joint state head for Asia markets at Savills Australia, said commercial assets are the apple of Asian investors eyes:
“Quality commercial assets continue to be at the forefront of investor attention, and we anticipate that prime and secondary yields diverge as a result of this.”
Andy Hu, joint state head for Asia markets at Savills Australia
Mr Hu and Jordan Lee, also of Savills Australia, commented on the recent sale of a landmark Sydney property: “… the sale of Workhouse at 398-402 Sussex Street is one of the lowest yields recorded for freehold assets in Haymarket for quite a while and at $24,000 per square metre, it is also one of the highest office rate per square metre recorded in the area.”